Article Sphere Logo

Drop Shipping Increases Profits

By Expert Author: Stephen Pope | Article Abstract
Word Count: 396 words | Views: 176 view(s)
You would like to increase your income by selling other peoples` products but you just don`t have the money to stock inventory.

On the other hand, perhaps you have lots of your own product and would like to increase your sales, but you don`t have a lot of money for advertising.

The solution to both problems may lie in drop shipping.

1. Sell Products You Don`t Own

You would like to sell a variety of products but you don`t have very much money. Don`t worry! Your customers will supply you with the necessary capital. You don`t have to stock inventory. You can drop ship orders.

For example, you receive a credit card order for a product retailing for one hundred dollars plus five dollars shipping. You now turn around and fax (or e-mail or phone) your order to your dropship supplier. You pay the fifty dollar wholesale product cost plus five dollars shipping using your own credit card.

Your dropship supplier now ships the order to your customer. With no investment in inventory, your gross profit equals fifty dollars.

2. Sell Products You Do Own

Would you like more sales of your own products? Consider drop shipping your products for other dealers.

As an example, you may have a product that sells for one hundred dollars plus shipping. Every time you sell that product yourself, you will have a sale of one hundred dollars. However, how many one hundred dollar sales can you make personally?

Now consider the situation where you offer your dealers a wholesale price of fifty dollars. You could have hundreds or thousands of persons selling for you.

It is true that each product sale now only brings you only fifty dollars in sales. However, these are sales that you wouldn`t otherwise have. What would it cost you to obtain these sales through traditional advertising channels? Would your advertising even bring you the desired results?

Keep in mind that with this drop shipping arrangement, you pay only for results. When a dealer retails your product for one hundred dollars, he is really receiving a fifty dollar profit for selling your product; you could view it as a sales commission. You receive only fifty dollars per product sale but sell way more than without drop shipping. You ship directly to the customer for your dealer.

So, whether you sell other peoples` products or your own, drop shipping can increase your sales, preserve capital, and maximize business profits.
Stephen Pope

About the Author/Author Bio

J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years. For profitable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com . To learn how drop shipping can increase your profits, visit http://www.yenommarketinginc.com/dropship.html .

Article Source: http://www.articlesphere.com/Article/Drop-Shipping-Increases-Profits/36978

Article Submitted: 2006-06-27 | This Article has been viewed 176 times.

Rate Article

Related Videos

Small Business Advice - Shipping Tips
Small Business Advice -Top eBay Shipping Mistakes
Small Business Solutions - 10 Steps to Shipping a Package
How to Save Money On Shipping
Small Business Solutions -10 Essentials for a Shipping Center
 

More "Business" Related Articles

 
 

Listed below are more articles related to the above article from the "Business" article category.

People interested in the above article "Drop Shipping Increases Profits" are also interested in the related articles listed below:

 
Summary: Most people don't begin the process of developing a business if they have no intent of establishing the business. Most people also believe there are different roads that lead to success. Is this true? Or are there just a variety of perspectives along the way?
There is a story I'd like to share; perhaps you've heard it. Two business owners were situated across the street from each other. The problem was these two men despised each other. Each merchant sold similar merchandise and were consistently at work trying to best the other in everything. When one got a customer he would stick out his tongue at the business owner across the street and laugh wildly.
The financial downturn has not been kind to anyone and now it has revealed that its latest victims could be cleaning services. Almost half of contract commercial cleaning businesses in Great Britain witnessed growth over the past year, despite the recession, but the good news did not last, because a third of office cleaners are considered 'at risk,' due to lax conditions.
Conference suites in the Benelux Union have to be just that little bit better than average. By booking Holiday Inn Meetings, you ensure you get the quality your company deserves - we take care of every little thing, so you don't have to.
"Joe! I need you to order 2,000 poly cover-bags for our shipment on the 15th!" the operations manager yells at 3:30 on a Friday afternoon. Being the purchasing agent for his company, it is inferred that Joe knows what a "poly cover-bag" is or what will be the best type, thickness, color or size to protect his product. If you know nothing about the polyethylene packaging industry, are looking for a specific answer like "how to measure" or are simply keeping up on recent market trends, this is the article for you. Pallet Covers are used to protect your company's product during transportation and storage.
Commercial disputes occur when two businesses have a disagreement, regarding a contract of some sort. This contract is an agreement that is legally binding, no matter if it is an oral or written agreement. There are other types of contracts called implied contracts, where nothing has been written down or said, but there is just an implication involved. Three ways to resolve any sort of dispute are through litigation, an Alternative Dispute Resolution, or Arbitration/Expert Determination.
If a company's P/E is 18, I would feel comfortable with it. Likewise, if the multiples show 22 or 23, there's no reason to lose sleep over these multiples. Why not? Well, because the multiples are hovering around the market's average which is 20.
 
Article Directory Home All Categories Business
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish